Export Guarantee Program

Coverage

For financing of domestic assets, guarantees can be up to 75%. Individual credit facilities may be guaranteed up to 90% if the guaranteed amount is less than $500,000 and the financial institution has other exposure with the customer. For financing of foreign assets, up to 100% coverage is possible for qualifying foreign assets.

When your customer wants more from their operating line of credit (such as an increase in facility limit, or consideration of other changes to terms), but the request is more than the financial institution is comfortable with, EDC can help. If your customer has a BB- credit rating or better, EDC will consider guaranteeing up to 75% of the total facility, if benefit to the customer is clear.

Eligibility

In situations involving non-Canadian assets, the customer should be a good credit risk within Canada. The foreign assets should be of a type that would be financed by your institution if they were in Canada. To qualify for Export Guarantee Program on a domestic operating line, an R&D-related loan, or a CAPEX loan not directly related to an export, your customer’s most recent consolidated year-end Foreign Business Sales must have been at least 15% of total consolidated sales. If the customer has not had any exports in the two years preceding the last 12 months, more information will be required.

Pricing

The Export Guarantee Program guarantee fee is a flat fee calculated on the guaranteed amount using an EDC risk-based pricing grid together with your institution’s estimate of the projected usage of the facility (for revolving lines). A setup fee of 25 basis points is applied to a guarantee greater than $500,000.